Obama lied to our faces: the 85/15 split, why health insurance companies are dead already

These are two stories that demonstrate the devastation Obamacare is bringing us.

Diane, a middle aged widow, worked for a small company and was laid off last December. Her boss was a generous man who paid for her health insurance in advance up to September 1st. Now she has no insurance because she can’t afford the $500.00 a month her insurer wants to keep her covered. Diane, who did not vote for Obama, will do without insurance because she can’t afford it.

Dave, is a friend who works in a private school. He and the rest of the staff enthusiastically voted for the “change” Obama promised. Now he has seen it. This Friday he will either have to go without healthcare insurance coverage or pay $1,200 a month with an $8,000 deductable to cover him and his wife.

Until Obamacare insurance companies used a business model that relied on a 65/35 division of their funds. This meant they had to always have 65% of their funds in a liquid form ready to pay claims.

They used the 35% of their money to invest and grow their funds to make a profit and offset the costs of expensive claims. This system wasn’t perfect but it worked.

The people who recounted how they had undergone a $50,000 heart operation “that was paid for by my premiums” were always totally wrong, but they didn’t realize it.

Now Obama has told us through his stupid grin, that we will of course be able to keep our current plan. What he never said is that insurance companies are now mandated to use an 85/15 division of their funds which means they have no money for investment…...

Is this a true statement? Is it really in the bill?

“insurance companies are now mandated to use an 85/15 division of their funds which means they have no money for investment…...”

If so it is no wonder that premiums are going through the roof. The insurance companies are simply trying to make up the investment shortfall and banking the balance. To have the same $35 / $100 they had they must raise rates 133% though. They can’t, so they will not be in business.

I shudder to think what my premium is going to be. I also shudder to think what is going to happen to my widowed mother’s taxes when the imputed value of my dad’s great insurance is imputed to her income. She lives on a small survivor’s benefit, teacher’s pension and social security and her taxes are TWICE what they paid on nearly double the income when dad was living. She is in her 80s and frankly, I don’t think she should have to pay any taxes at all. Instead she takes money out of savings to pay quarterly taxes on very small amounts of investment income.

There is no problem with our health care. It is the envy of the world, we have the finest Doctors, the best facilities, the most advanced technologies in all related fields, the best access to services.
To say our health care system is broken is a lie.

There is a difference between 50 million peoples not having access to health care services and not having insurance.

The true problem with having the best health care in history is it is expensive.

The reason it is expensive is because the bills are paid by other people’s money, ie: Insurance companies, and public assistance. Thus, there is no incentive for competitive pricing. The average consumer feels they avoided financial destruction by paying thousands of dollars every year in premiums.

In other words, if you don’t want bad things to happen to you, then you better pay up.

It’s called the protection racket and it’s the second oldest way to make a living. It’s also called extortion.

The entire problem with the health care system is not with health care, it’s insurance. To mandate that everyone has insurance only serves to make matters worse. Like trying to put out a fire with buckets of gasoline.

The true solution is to establish a system that ensures lowering costs while encouraging even more advancements over our already lofty standards. The only way to achieve the desired results is by injecting the patient with the only proven formula that reduces costs and increases quality. The name of this time tested, undeniably successful panacea, is “free enterprise”.

The average family of four taking home around fifty thousand dollars a year after taxes, spends twenty percent of their after tax money on extortion payments. If a medical crisis occurs every twenty years, then they have spent nearly a quarter of a million dollars on paying for it. If the event costs 170,000 dollars then the insurance company gets to keep 80,000 dollars. If the event costs 330,000 dollars then the insurance company looses 80,000 dollars. Insurance companies like these odds. In fact, that is exactly how they make so much money.

Over your lifetime, your extortion...um, premium payments will exceed half a million dollars. Whatever is not spent on medical bills, the insurance company keeps. Any sane person feels some resentment in those facts and has no interest whatsoever in being proactive about keeping the costs down, in fact, some feel that,” the more those bastards have to spend the better!”.

We have a system where the buyer, who gets mugged every month, pays the seller with money from the thief !

Hardly conducive to having a competitive market. In fact it ensures that prices of both health care and health insurance will never go down, instead, it ensures that prices will always go up.

The medicine for this terminal condition is obvious and will have stunning side effects, rapidly soaring the entire economy to heights never before encountered.

Medical care entities bill the patient directly, all invoices will have the option for installments with terms, or payment in full.

Every person could be required to deposit 20% of any gross income into an interest bearing personal health care savings account. The interest calculated is based on the rate of inflation.

This is their money to keep and spend as they like with the provision that if the money is spent for medicinal purposes then it is tax free. Up ton once every year, you may withdraw up to half of the money, but if not used for healthcare care it would be taxed as income.

The action sets to action a new and powerful dynamic.

At first, prices will settle to what the market can bear.
Then, enterprising people will figure ways to dominate the market by lowering prices, making money thru sheer volume as say a Wal-Mart, Amazon, Sears and so many others. This will force some out of business but will lower the prices across the entire industry.

Mean while, the consumers will be flushed with capital on hand and a feeling of security and confidence. The economy will grow with unbridled stride. Large ticket items will be in high demand, Finding enough workers, not jobs, will be the major problem and the poor will enrich themselves. It would mark the beginning of a new frontier of prosperity.

In Earnest,

RavenLooneyToon

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